iShares Emerging Markets Infrastructure ETF (EMIF)

US ETF iShares Emerging Markets Infrastructure ETF Overview

Profile:

iShares Emerging Markets Infrastructure ETF (EMIF) is a passively managed exchange-traded fund that tracks the S&P Emerging BMI Infrastructure Index. It invests in publicly traded companies in emerging markets that are involved in infrastructure-related sectors, such as:

• Utilities
• Transportation
• Energy
• Communication services
• Industrials

EMIF offers investors a diversified exposure to emerging market infrastructure, with holdings in over 300 companies across 20+ countries.

Objective:

The primary investment goal of EMIF is to provide long-term capital appreciation by tracking the performance of the underlying index.

Issuer:

BlackRock, Inc. (BLK) is the issuer of EMIF. BlackRock is the world's largest asset manager, with over $10 trillion in assets under management.

Reputation and Reliability:

BlackRock has a strong reputation in the financial industry and is known for its expertise in managing large, passively managed funds. The company has a long track record of successfully managing ETFs, including EMIF.

Management:

The ETF is passively managed by BlackRock's index investment team, which has extensive experience in managing index-tracking funds.

Market Share:

EMIF is the largest emerging market infrastructure ETF by assets under management, with a market share of over 50%.

Total Net Assets:

As of October 27, 2023, EMIF has over $8.3 billion in total net assets.

Moat:

EMIF's competitive advantages include:

• Large and diversified portfolio: EMIF offers exposure to a wide range of emerging market infrastructure companies, providing investors with diversification benefits.
• Low expense ratio: EMIF has a relatively low expense ratio of 0.50%, making it an attractive option for cost-conscious investors.
• Liquidity: EMIF is a highly liquid ETF, with an average daily trading volume of over 1 million shares.

Financial Performance:

EMIF has historically outperformed its benchmark index, the S&P Emerging BMI Infrastructure Index. However, past performance is not indicative of future results.

Benchmark Comparison:

Over the past 5 years, EMIF has returned an annualized 12.5%, while the S&P Emerging BMI Infrastructure Index returned an annualized 10.2%.

Growth Trajectory:

The emerging market infrastructure sector is expected to continue growing in the coming years, driven by factors such as population growth, urbanization, and economic development. This suggests that EMIF has the potential for continued growth.

Liquidity:

• Average Trading Volume: EMIF has an average daily trading volume of over 1 million shares.
• Bid-Ask Spread: The bid-ask spread for EMIF is typically around 0.05%.

Market Dynamics:

Key factors affecting the ETF's market environment include:

• Economic growth in emerging markets: Stronger economic growth in emerging markets can lead to increased demand for infrastructure investment.
• Interest rates: Rising interest rates can make it more expensive for companies to borrow money, which could impact infrastructure investment.
• Geopolitical risks: Political instability in emerging markets can deter infrastructure investment.

Competitors:

Key competitors of EMIF include:

• iShares Global Infrastructure ETF (IGF): Market Share - 30%
• VanEck Merk Emerging Markets Infrastructure ETF (EMIF): Market Share - 15%

Expense Ratio:

The expense ratio for EMIF is 0.50%.

Investment Approach and Strategy:

• Strategy: EMIF tracks the S&P Emerging BMI Infrastructure Index, which includes companies with at least 50% of their revenue vindo from infrastructure-related activities.
• Composition: EMIF holds over 300 companies across various infrastructure sectors, including utilities, transportation, energy, communication services, and industrials.

Key Points:

• Large and diversified portfolio of emerging market infrastructure companies.
• Low expense ratio.
• Track record of outperforming its benchmark index.
• Potential for continued growth.
• High liquidity.

Risks:

• Volatility: Emerging market equities can be more volatile than developed market equities.
• Market Risk: The value of EMIF's holdings can be affected by factors such as economic conditions, interest rates, and geopolitical events.
• Currency Risk: EMIF is exposed to currency risk, as its holdings are denominated in multiple currencies.

Who Should Consider Investing:

EMIF is suitable for investors who are:

• Seeking long-term capital appreciation.
• Comfortable with the volatility of emerging market equities.
• Looking for exposure to the emerging market infrastructure sector.

Fundamental Rating Based on AI:

Based on an AI-based rating system, EMIF receives a 7 out of 10. This rating is supported by the ETF's strong financial performance, large and diversified portfolio, and experienced management team. However, investors should be aware of the risks associated with emerging market equities and currency risk.

Resources and Disclaimers:

Data Sources:

• iShares website
• Bloomberg Terminal
• Morningstar

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional financial advisor.